Electrica Furnizare, which is set to be privatized at the beginning of 2013, and power company Complexul Energetic Oltenia will have private management by the end of September, according to Romania’s latest memorandum of economic and fiscal policies to a EUR3.6 billion loan with the IMF.
The new managers and boards at Romgaz, Transgaz and nuclear power producer Nuclearelectrica will be selected by the end of the year, reads the document obtained by MEDIAFAX.
Romania was to select private managers at multiple state companies at the beginning of 2012, but the process was put off several times. The latest deadline announced by the Government was July.
Hydropower producer Hidroelectrica was among the companies to have private management, but procedures were hindered after the company entered insolvency in June. For Hidroelectrica, the appointment of the general manager will take place once the company exits insolvency, according to the document.
“For state-owned companies under the Ministry of Transportation and Infrastructure, we have hired a human resource firm to select qualified candidates for the boards of directors and managements of eleven firms in its portfolio, including CFR Calatori and CFR Infrastructure. We will appoint the new boards of directors and professional management by end-September 2012,” the document reads.
In September 2011, Romania’s Government and the IMF agreed to appoint private management at 15 state-owned companies in 2011 and 2012. In October 2011, the Economy Ministry signed a contract with executive research company Pedersen & Partners to recruit professional managers. The contract was terminated in May 2012. Pedersen & Partners said later that the contract was terminated because the ministry decided to change the headhunting process.
The ministry announced in July it set off procedures to select the consultants that would recruit professional managers to run 47 state companies.
Economy Minister Daniel Chitoiu said at that time that procedures to appoint new managers at Romgaz, Transgaz, Nuclearelectrica and Transelectrica would be finished by July 25 at the latest.